Friday, January 27, 2012

Society:  Measuring the Top 1% by Wealth, Not Income

... an analysis of the [2009] Fed data is still revealing in that it shows the wealth gap, as measured by net worth, is much more extreme than the chasm as measured by income.

The Times had estimated the threshold for being in the top 1% in household income at about $380,000, 7.5 times median household income, using census data from 2008 through 2010. But for net worth, the 1% threshold for net worth in the Fed data was nearly $8.4 million, or 69 times the median household's net holdings of $121,000.

They controlled nearly a third of the nation's financial assets (investment holdings) and about 28% of nonfinancial assets (the value of property, cars, jewelry, etc.).
When asked if they feel lucky in their financial affairs, nearly 80% of the super-rich strongly agreed. The rest of us? Fewer than one-third feel that financial good fortune is shining upon us.

For more, see Measuring the Top 1% by Wealth, Not Income by Robert Gebeloff and Shaila Dewan, January 17, 2012 at Economix.

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